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Your Name: _______________________
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5 Financial diagnostic categories
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Walmart
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Target
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Formulas applicable to the categories
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Liquidity of short-term assets
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1
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Current ratio
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Current Assets/Current liabilities
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Cash ratio
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Cash/Current Liabilities
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Quick ratio
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(Current Assets - Inventory)Current Liabilities
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Long-term debt-paying ability
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2
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Debt ratio
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Total Debt/Total Assets
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Debt-Equity Ratio
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Total Debt /Total Equity
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Times Interest earned
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EBIT/Interest Expense
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Profitability
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3
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Profit Margin
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Net Income/ Revenues
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ROA
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Net Income/ Total Assets
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ROE
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Net Income/ Total Equity
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Asset utilization/management efficiency
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4
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Total Asset Turnover
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Revenues/ Total Assets
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Inventory Turnover
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Cost of goods sold/ Average Inventory
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Receivables Turnover
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Revenues on credit/ Average Receivables
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Market measures: Use Yahoo Finance
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5
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P/E ratio
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Price as on 2016/Basic EPS
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EPS
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Basic EPS
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(this does not apply to Starbucks 4.1)
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Richierich49
911GM506RatioWorksheetforUnit3-2TargetWalmartassignment.docx
0
